Income Tax Act 2007 section 580

Allowable deductions: restriction on double counting

Section 580 prevents taxpayers from claiming the same loss or expense as an allowable deduction more than once when calculating gift aid relief.

• This section is an anti-avoidance measure that stops double relief being obtained on the same item.
• Where a loss or expense has already been deducted in one calculation, it cannot be deducted again in another calculation under these provisions.
• The restriction applies to ensure that any amount which has been used to reduce income or gains in one context is not also used to reduce them in another context.
• The rule derives from the former Schedule 23A to the Income and Corporation Taxes Act 1988 and was subsequently amended by the Finance Act 2013.